Student
Semenova Ekaterina Dmitievna
Institute of Economics and Management of State Higher Educational
Establishment ‘Crimean University for the Humanities’ (Yalta), Crimea
Scientific adviser: Philosophy
Doctor in Economic Science
Lukyanova Yelena Yurievna
Institute of Economics and Management of State Higher Educational
Establishment ‘Crimean University for the Humanities’ (Yalta), Crimea
Risk management
main aspects application
for touristic
business
In
today's world, integration and innovation processes acquire new shape. Risks
associated with any business. You must not only identify but also measure and
have an idea, how and by what methods it is possible to calculate the
probability of occurrence of risk situations.
The
word ‘risk’ in the literal sense means making the decision, the result of which
is not known beforehand. Targeted actions to limit the risk in the business are
known as risk management.
Application
of risk management in today's economic activity has three main positions:
̶ economic activity risk effect identification;
̶
respond ability these activities possible
negative consequences;
̶
risk possible negative effects
neutralization or offset measures development and implementation.
It is very important to identify touristic risks.
Touristic and recreational complex risk factors can be
systematize into 4 main groups:
̶
socio-political,
̶
macro-economic,
̶
scientific-technical
̶
and environmental factors.
These
factors are supplemented by internal threats that affect the sustainability of tourism businesses. These threats include all aspects of economic and commercial activities of tourism
enterprises and appear in the
main production processes
of enterprises of touristic recreational
complex, financial investment and management activities, in interactions
with tourists and economic partners.
Economic
units which are connected to tourism have high risks of commercial contracts default or improper
performance. For example, it can be of cancellation of tours because
air companies charter flights of unresolved questions with air carriers.
There are cases of inadequate service of tourists due to sudden-onset
problems with the operators in the host countries. It also can be full pay
refusal after tourist book tour and others.
There
are classification of tourist
risks:
̶
subjective risk – risk that
has consequences that can not be
objectively assessed;
̶
objective risk is characterized precisely measurable consequences;
̶
financial risk involves direct effects, consisting in monetary losses;
̶
non-financial risks makes non-monetary losses such as loss of
health;
̶
dynamic risk is probabilistic; its effects vary depending on the situation, for example, it may be a risk of bankruptcy or financial
crisis;
̶
static risk is the risk that, practically unchanged over time, in
particular the risk of fire;
̶
fundamental or non-systematic, non-diversified, risk has
a total impact;
̶
private or systematic, diversified, risk usually
has a local character.
According to object
application tourist risks can be classified
into two groups: life and health risk of tourists and sightseers; economic units risks for in tourism sector. Travelers or tourists life and health risk occurs to risk
sources existence and manifestations of risk factor
threatening human level, human exposure to hazards.
Economic units risk in
touristic areas are divided into types: financial (credit risk, price risk, the risk of changes in exchange
rates, market risk, inflation risk, risk of insolvency); certain goal achieving risk in management system is aimed at achieving a certain goal – minimizing losses (financial,
human, material, etc.) organization.
Risk
management in touristic business realizes on
two levels – strategic and tactical.
These levels of intra-organizational
control system (strategic planning,
coordination and control), and subsystems
organization.
Each subsystem element consideration determine sequence of risk management steps, which are described by
the following chain: definition of risk
management purposes → analysis
of external and internal touristic business units environment
→ formulation of strategy and tactics of risk management
→ choice of means and methods of risk management → resource allocation and functional responsibilities → analysis of risk factors for risk identification → quantitative and qualitative risk assessment
→ development and implementation
of adaptation subsystem to
develop risk estimates
→ control →
comparison of the results of tourism
risk management with the goals and benchmarks → identification
of negative deviations →
adoption of corrective actions to develop recommendations for improve the
effectiveness of risk management.
The
touristic risks prevention includes insurance, retention, and dissipation risk
avoid. Also economic units need implementation of ISO 31000:2009, ISO 9001:2008 standarts.
Thus, risks effect to economic development of touristic industry. Organizational and
economic mechanism of risk management can effectively solve many problems of economic activity tourist business units. This theses
information can be useful for regional authorities on improving economical and
management innovations, business leaders and economic universities students.
Literature
1.
ISO 31000:2009 [Electronic Source] – Mode of Access: http://www.iso.org.
2.
ISO 9001:2008 [Electronic Source] – Mode of Access: http://www.iso.org.
3. Jarrow R.,
Chatterjea A. An Introduction to Derivative Securities, Financial Markets, and
Risk Management / Jarrow R. , Chatterjea A. – NY. : W W Norton & Company
Incorporated, 2013. – 798 p.